topic Re: Self lender reporting in General Credit Topics

Self lender reporting

Anonymous — Thu, 07 Nov 2019 13:25:10 GMT

Hi everyone!
For those of you that have a self lender loan i am curious to know how they report on your 3 bureaus. Does it say secured loan? Or reports differently?
Most importantly I am wondering if when applying for a mortgage what lenders would think about this little $500 secured loan there? Would they think that i am gaming the fico score and maybe dont have the ability to be responsible with a big loan? My middle mortgage score now is around 694 with 3 derrogatories(120+ late, 90d+ late,60d settled paid less than full amount) from a 3 years old short sale with only now Credit cards being reported PIF and AZEO, i am wondering if in my case would still be worth to go do a self lender if my priority is getting a conventional mortgage (a year from now) and improve mainly the mortgage score since i have enough credit cards already and 20% down payment for the home. Not sure if self lender from the Mortgage perspective would change so much my score (and help a little with the mix) enough to risk lenders looking at this $500 loan reported as to only trying to boost my score and think i am playing score games?
If you were in my situation would you still get a self lender loan? Or would you just allow the score improving with cc payments trying GW and continue without a SSL? Thank you

Re: Self lender reporting

Anonymous — Thu, 07 Nov 2019 15:15:29 GMT

First and foremost if I am reading your post correctly you just referred to Self lender as a SSL (Shared Secure Loan)?

From what I've read, Self Lender is NOT a shared secured loan.

Second, you have multiple derogatories and your worried about a little 500 dollar self lender loan being interpreted as "gaming the system"?

Those derogs will be the only thing staning out to any potential lenders regardless of taking the loan or not.

Re: Self lender reporting

Anonymous — Thu, 07 Nov 2019 20:37:40 GMT

Thank you. So your answer would be not to get the self lender?
I have never got a loan by myself(bad decision) so i have no idea how lenders will see derrogatories plus a self lender?
Other than trying to remove those bad things i want to make sure i get prepared and do what is important to improve score without creating more problems.
If will not help in anything and only help mostly for fico 8 why the risk?

Re: Self lender reporting

Anonymous — Thu, 07 Nov 2019 21:54:11 GMT

From what I've read about installment loans, you wont start seeing score gains until you've paid it down to 8.9 percent or lower.

If you're planning on paying it off completely before you get your mortgage any score gains you would have gotten from the loan would be lost anyway.

Although, I've also read that some lenders like to see installment loan history on your report. If you've never had an installment loan then perhaps it might help to just go ahead and get the Self lender loan.

Maybe one of the more experienced members can chime in?

Re: Self lender reporting

Anonymous — Thu, 07 Nov 2019 22:22:21 GMT

Yes. Self lender reports as a secured loan. It is not gaming the system. Secured loans are common. For exmaple bank may require you to secure a loan with some assets if your credit is not strong enouh.

The main thing is there is no score difference between a secured loan and an unsecured loan. They "help" just the same. As far as score you will see some score boost if you have no other loans because the "credit mix" portion of FICO will be realized. You will not see the maximum boost you get by paying the loan down below 8.9%. Still worth it imho if you have no other loans on your credit report.

Also now Self Lender gives you a secured card with the loan that does not require additional funds. That is two tradelines from one product with no hard pull to open.

Re: Self lender reporting

Anonymous — Fri, 08 Nov 2019 15:05:28 GMT

Thank you Morpho that is great information and help. Would you elaborate about the card? how it works as i did not hear about it. I just know about the loan they offer. Thats good to know i probably would like that too if there is not hard pull even though i already have 8 cards. Or maybe is not necessary but with these derrogatories more cards Pif and more higher number of reported good payments would maybe compensate comparing to the other baddies from short sale. Not sure if is that how works? Several months there not paid until short sale was approved and done.

Re: Self lender reporting

Anonymous — Fri, 08 Nov 2019 15:26:51 GMT

I do not have first hand experience with the card because they started the card right as my Self Lender loan came to an end.

This video pretty much explains it:

https://learn.self.inc/lpg/click-through/self-card-education-1

Re: Self lender reporting

Anonymous — Sat, 09 Nov 2019 01:54:22 GMT

Thank you so much i will check into that. Do you think the self card would still be good with the 8 cards i have already? Would add extra points to my score?

Re: Self lender reporting

FireMedic1 — Sat, 09 Nov 2019 09:08:16 GMT

@Anonymous wrote:
Thank you so much i will check into that. Do you think the self card would still be good with the 8 cards i have already? Would add extra points to my score?

If you have 8 cards. No need for any more. No more apps after the self lender. Mortgage lenders dont like to see any new accounts at least for a year before applying in some cases. Good Luck!

Re: Self lender reporting

randomguy1 — Sat, 09 Nov 2019 14:02:11 GMT

“From what I've read about installment loans, you wont start seeing score gains until you've paid it down to 8.9 percent or lower.”

^^^incorrect. 8.9% or lower is maximum score gain.

Re: Self lender reporting

Anonymous — Sat, 09 Nov 2019 17:15:52 GMT

Ok my friends that is what i will do then. I Will not worry about getting any more cards and just get the self lender for 24 months so by the time i apply for mortgage later on the self loan will not be at 8.9 % but will be paid maybe 18-20 months of the 24.🙏

Re: Self lender reporting

Anonymous — Sat, 09 Nov 2019 18:14:29 GMT

@randomguy1 wrote:

^^^incorrect. 8.9% or lower is maximum score gain.

^^^Semantics. ^^^Incorrect

If we're gonna go that far into detail, might as well go a step futher.

Whether or not he/she even sees a score gain or drop to begin with will depend on how financially responsible he or she is across all of his or her accounts.

See, I can play semantics too.

Re: Self lender reporting

Anonymous — Sun, 10 Nov 2019 01:26:10 GMT

Lol. “She will be responsible”. I promise. 😊